Tuesday - June 21, 2005
 Want to view the archive of past issues? Go to: http://at.zacks.com/?id=1344. Get Profit from the Pros content in Real-time. Learn more about this free tool at: http://at.zacks.com/?id=1452. Manage Profit from the Pros subscription: 1. FEATURED EXPERTS Here we cast the spotlight on a timely Featured Expert commentary that recently appeared on Zacks.com. Following the article you will find previews of other profitable commentaries with insights and recommendations from leading investment experts.
There are a variety of catalysts on the horizon for Genzyme (NASDAQ: GENZ). In the next three months Nadine Wong and her team expect DCOR top-line data, Renagel carbonate development news, a decision from FDA about DX-88 Phase III trials, the first interim look at Campath in multiple myeloma, information on development of a substrate small molecule inhibitor for Gaucher disease, and the BLA filing of Myozyme in the U.S. in mid-2005. But in the past month, Genzyme’s share price took a dip and Wong and her team believe the market is anticipating the outcome of the DCOR (Dialysis Clinical Outcomes and Research) study, a major catalyst for Genzyme shares in 2005. Recall that the DCOR study is the largest clinical study to be performed in the end-stage renal disease (ESRD) patient population to date, with 2100 patients enrolled. DCOR is a U.S. focused, 3-year study comparing all-cause morbidity and mortality in ESRD patients on Renagel versus calcium-based binders. The study is 80% powered to detect a 22% reduction in all-cause mortality. The trial is intended to demonstrate that lowering the rates of coronary calcifications will result in a survival advantage. Studies with Renagel have previously demonstrated that the progression of coronary calcification is reduced compared with traditional agents. In the general population, coronary calcification rates are correlated with atherosclerosis and poor outcomes, but data for the chronic renal failure population in particular is limited. The company has indicated that it is preparing for a positive outcome of the trial. Renagel is a non-calcium based phosphate binder. Some of the drug’s key benefits over cheaper calcium-based binders are the lack of cardiac calcification, lowering LDL cholesterol, and lowering C-reactive protein levels. However, Renagel is widely believed to offer only equivalent phosphate binding compared to its cheaper competitors, and the drug’s cardiovascular benefits have not been established. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The DCOR study could fall short of showing a clear all-cause mortality benefit but meet some of the secondary objectives. This outcome would be acceptable and would support Renagel’s differentiation from calcium-based binders. However, this is unlikely to drive further market share gains. Then there remains a chance that the DCOR study may fail to show any difference from conventional agents. However, metal-based phosphate-binders have their share of concerns. For example, there is the issue of whether Shire’s Fosrenol, a lanthanum (metal)-based binder, could cause neurotoxicity. Therefore, a negative outcome in the DCOR will not automatically cause physicians to switch patients off Renagel, but would likely blunt, new prescriptions. The current formulation of Renagel is sevelamer hydrochloric acid, which can cause acidosis in patients on therapy. In order to penetrate the larger chronic kidney disease (CKD) stage III-V market, Genzyme is developing a second-generation non-chloride version of Renagel, namely sevelamer carbonate that is optimized for CKD patients with hyperphosphatemia,. For the remaining 2005, Genzyme plans to compete enrollment in an ESRD bioequivalence study of the carbonate versus hydrochloride tablets. The bioequivalence study will be the basis for approval of the carbonate. In addition, in late 2005, Genzyme will begin enrolling patients in the CKD study that will evaluate sevelamer carbonate versus placebo to treat CKD hyperphosphatemia. Positive results from the CKD study could lead to a U.S. approval in 2007 of sevelamer carbonate, followed by a European approval in 2008. With all that is going to happen with Genzyme is positive, a dip in its share price represents an opportunity for investors. BioTech Stock Report is an `information integrator` specializing in biotechnology stocks. We bring together the mass of medical scientific data that is available and interpret it for you. Each report gives a detailed rationale explaining the technology, examining new products, evaluating their potential, the markets and the likely impact it has on a company’s future. http://at.zacks.com/?id=1779. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Judy Alster profiles some stocks that ought to do well in the summer months: More... Martin and Ragas say that Willis Group is a company with a strong future. More... Mutual fund expert Ron Rowland says it seems the summer doldrums have set in. More... e) Earnings Growth Set to be Above Average Jim Collins says stock prices will likely perform similarly to their earnings growth rates. More... f) Consumer Prices Moved Lower in May John Reese cites a dip in energy prices for the first decline in 10 months. More... Featured Expert articles are courtesy of the 60+ leading investment newsletters that have partnered with us to create the Zacks Expert Advice service. Check out the Experts section of Zacks.com daily to find profitable stock picks and timely market commentary at: http://at.zacks.com/?id=1340.
2. BEST OF ZACKS EQUITY RESEARCH BULL OF THE DAY Burlington Northern (BNI) - Raising Our Estimates. ValueVision Media (VVTV) - Profits Under Pressure. Conglomerates Feel Lack of Investor Focus Electronics Cost-Cutting Increases Efficiency
3. PROFIT TRACKS Zacks.com is proud to share with you some of the best trading
strategies that truly allow you to Profit from the Pros. Today
we highlight... Profit Tracks: PEG Ratio This strategy uses the PEG Ratio to find attractively priced stocks poised for price appreciation. The PEG Ratio is simply the P/E (Price divided by Earnings) of a stock divided by its 5-year projected growth rate. Too often investors think of value investing being the antithesis of growth investing. The beauty of using PEG is that you can find value stocks even amongst hot growth stocks. If you like to use a company’s PE ratio to determine its value, you’ll love using the PEG ratio. Find out which companies offer the greatest value regardless of growth rate to enjoy stellar returns. Value investing may be boring to some, but a +114.4% return in 2003 and +38.4% return in 2004 may create many converts to this Profit Track. Here are four stocks that make the grade for the PEG Ratio Profit Track American Safety Insurance Holdings Ltd (NYSE: ASI) released its first-quarter financial results early last month. The company posted earnings of 50 cents per share, surpassing last year’s first-quarter earnings of 49 cents per share and jumping ahead of the consensus estimate by about 16%. When commenting on the results, ASI noted an increase in earnings and solid underwriting results from its insurance operations. Another note worthy item is the company’s PEG ratio of .52. Continue your research on ASI at: http://at.zacks.com/?id=1996. Mission Resources Corporation (NASDAQ: MSSN) boasts an impressive PEG ratio of .27. The company is a Houston-based independent exploration and production company which acquires, develops, and produces crude oil and natural gas in the Permian Basin of West Texas, along the Texas and Louisiana Gulf Coast, and in the Gulf of Mexico. MSSN announced first-quarter earnings of six cents per share in early May, eclipsing the prior year result. The company said it met or exceeded its first quarter goals for production, expenses, and discretionary cash flow. Continue your research on MSSN at: http://at.zacks.com/?id=1997. Orleans Homebuilders, Inc. (AMEX: OHB) is a Zacks #1 Rank (Strong Buy) company. In early May, the company reported fiscal third quarter earnings of 56 cents per share, improving on last year’s 45 cents and exceeding the consensus estimate by almost 22%. The residential home builder believes it is well positioned for continued new order, revenue, and earnings growth. With a PEG ratio of .53, OHB is also well positioned for price appreciation. Continue your research on OHB at: http://at.zacks.com/?id=1998. OMI Corporation (NYSE: OMM), also a Zacks #1 Rank (Strong Buy) company, has a PEG ratio of .40, indicating that it is an attractive value stock. In mid-April the company announced first-quarter earnings of 85 cents per share, improving on last year’s 70 cents and surpassing the consensus estimate by approximately 10%. The company said that its results for the first quarter reflect both an excellent operating environment and strong performance by its ships and personnel. Continue your research on OMM at: http://at.zacks.com/?id=2016. To see the full list of stocks that currently pass this winning screen, go to: http://at.zacks.com/?id=1999. All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this screening strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to this powerful stock picking tool. Learn more about the Research Wizard and Free Trial offer at: http://at.zacks.com/?id=1370 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Kevin Matras shows how you can beat the market with his 'Upgrades and Revisions' strategy: http://at.zacks.com/?id=1474. 4. ZACKS #1 and #5 ADDITIONS Zacks.com is proud to share with you some of the best trading
strategies that truly allow you to Profit from the Pros. Today
we highlight: Zacks Rank #1 and #5 Additions The Zacks Rank is a powerful stock indicator whose #1 Strong Buy stocks have risen by an average annual return of 32.8% since 1988 versus 11.9% for S&P 500. And just as important, it tells you which stocks to sell now (Zacks #5). Since 1988 the S&P 500 has outperformed the Zacks #5 Rank Strong Sells by 155.5% annually (11.88% vs. 4.65% respectively). Learn more about the Zacks Rank following this section. Below you will find all the stocks added to the Zacks #1 and #5 Ranked lists this week.
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Zacks #1 Rank List continued...
To see the full list of Zacks #1 Ranked stocks (approx. 200 stocks), then click here. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Zacks #5 Ranked List: 27 New Additions (alpha by ticker)
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Zacks #5 Rank List continued...
To see the full list of Zacks #5 Ranked stocks (approx. 200 stocks), then click here. 5. OPTIONS CENTER Zacks has partnered with the leading options experts,
Schaeffer's Investment Research, to provide you the best options
commentary, research, and trading tools on the market today.
Read below more on Schaeffers Tools to Profit with Options. So how's everyone doing this week? Hopefully trading/investing is profitable and life is fun. With the intro out of the way, let's get to the point of this blurp - to show you how to use the filters on this page and try to make some money and maybe make life a little more fun as well. Over the past eight months I've given numerous recommendations found using the filters specifically on these pages. Yes, not all of them have been huge winners, but if you've been following along over this time frame, then you might agree that we've had our fair share of nice winners to more than offset the losers. Let's find another winner. One filter that I haven't talked about in a while is the Unusually High Option Volume filter. The nice thing about this filter is you can look at both the most active bullish calls and bearish puts from the previous day's action. What good does this do you might ask? Well, to answer that question let's take a step back to describe our Methodology here at Schaeffer's. In short, we are contrarians. The simplest way to put this is we look for stocks that are trending higher, amid a sea of skepticism, and we view this as a sign that money is still on the sidelines just waiting to come in and push the shares higher. Obviously, bearish plays are vice-versa - optimism toward an underperformer. Now back to those Unusually High Option Volume filters. I like to look at them everyday to see if any names stand out as potential plays. With this filter for a bullish play, I like to see lots of bearish puts trade on a stock that I like to the long side. Remember we are contrarians and that means we want to bet against the crowd. Looking at the list from Thursday, June 16, one name stood out to me and that was steel giant Nucor (NUE). According to the filter, puts traded at 3.1 times their daily average volume on Thursday - a good deal of bearish bets if you ask me. As I've noted before, stocks tend to move with their groups more than anything. So if you think steel stocks are going to go higher, then pick a few and enjoy the ride. It's very tough to fight the trend when the group is going one way and your stock is trying to go the other way. Come on, it's not worth it, just go with the easy money and ride the trend. Now taking a look at steel, this is one group that I'm personally starting to like to the bullish side. This is why NUE caught my eye. Steel stocks were one of the top performing stocks the past few years, but since April they've been hit harder than just about any other group. But the recent price action on a few steel stocks looks like they could be trying to form a tradable bottom. Then on Thursday an event occurred that really got me looking at steel stocks. Oregon Steel (OS) actually lowered their earnings estimates and the stock started lower but eventually ended higher. That to me was a sign that the selling across the board on steel stocks might finally be finished. The price action on NUE recently has been pretty strong compared with other steel stocks and we had our positive news driver in OS, but what about the sentiment toward NUE? Remember it is very important to see strong skepticism toward a stock that outperforms as a sign that money is still on the sidelines. Besides the fact that a lot of bearish puts just traded on NUE, we must look at other areas of sentiment before pulling the trigger. One of my favorite areas to look to measure sentiment is what the shorts are doing. We love to see lots of bearish shorts, as a sign of potential buying power should the stock start to go up. Because remember shorts are bets the stock will go down and that means they sell it first hoping to buy it back at a lower price. It turns out NUE has over 7% of its float sold short. This is more than enough to create a nice short BBQ, otherwise known as a short covering rally. Also the analysts don't like the shares either, as there are only three "buys" out of 13 total analyst ratings. This leaves plenty of room for upgrades should the shares start to rally once more. I mean, come on, the shares have gained over 54% the past 12 months. Should they start to rally once more, those analysts are going to finally realize that they might be wrong and start to put some "buys" out there. I've seen enough and I think taking a stab at a longer-term call option on NUE might make a nice play here. With that said, let's make a hypothetical buy of the NUE January 2006 50 call (NUE AJ) for $8.70 (where it was trading on Friday afternoon). Please feel free to write this one down and track it to see how we do. In conclusion, there you have it - after just a few minutes of work with the filters we have a good looking contrarian play in NUE. Will this one work? Hey, if I knew I probably wouldn't be writing this to everyone for free, but I can tell you that everything sure looks pretty good to me. But always remember that when it comes to options you very well could lose your entire investment at anytime should it move against you quickly. Don't let that scare you though, because with proper money management and fully using the leverage that options provide, all it'll take is a few nice trades out of every 10 and you'll be more than happy. Have a great week and keep on using the filters on this page and try to find what works best for you. To learn more about the Unusually High Option Volume filter, click here. a) Summer Doldrums to Persist? Ken Trester says it is a good idea to keep most of your option-buying powder dry. Read about two options: More... Discover all the tools and commentary available from the Zacks.com Options Center at: http://at.zacks.com/?id=614. OTHER TOOLS FROM ZACKS At the heart of Zacks Investment Research is the Zacks Rank investment philosophy that continues to vastly outperform the market. Our Zacks #1 Ranked (Strong Buys) have produced the following results for investors:
And just as importantly, the Zacks #5 Rank stocks (Strong Sell) List has alerted investors as to which stocks to dump from Their portfolios to avoid unnecessary losses. To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Download a free copy now to prosper in the years to come by visiting: http://at.zacks.com/?id=1346. Or view the full list of Zacks #1 Ranked stocks at: http://at.zacks.com/?id=1353. FREE PORTFOLIO TRACKER Do you believe that these events affect stock prices?
If you answered yes, then how are you staying on top of these changes for your stocks? If you are one of the 45,000 investors who wake up every morning to the Daily Portfolio Updates emails from Zacks.com, then you are all set. If not, then sign up now to get this vital information sent to you daily and improve your portfolio's performance. Did we mention it's free? Get started now by going to: http://at.zacks.com/?id=1674 We hope you enjoyed this issue of "Profit from the Pros", And we look forward to visiting with you again next week. REFER-A-FRIEND If you enjoy this e-mail newsletter, then please pass it along to a friend. Simply forward them the link below to sign up for their own free subscription. If you're reading a forwarded copy, sign up for your own, so you get this wealth of information every week. Just click here. THANKS! Regards and Happy Investing, Stephen Reitmeister p.s. What is the mission for Zacks Profit from the Pros? Click here to find out how we will help you become a more successful investor. *The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. To contact us by mail: Zacks Investment Research To unsubscribe from receiving "Profit from the Pros" e-mail newsletter, click here. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Zacks #1 Stocks on the Move 05/17/2013
| Company Name | Symbol | %Change |
|---|---|---|
| VIASAT INC | VSAT | 19.35% |
| OLD SECOND B | OSBC | 5.76% |
| GAMCO INVEST | GBL | 4.61% |
| CORNING INC | GLW | 4.47% |
| SYNCHRONOSS | SNCR | 4.23% |
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